If It Is Difficult, or Costly, to Prevent People Who

question 35

Multiple Choice

If it is difficult, or costly, to prevent people who do not pay for a good from consuming the good, then the good is a ________ good.

• A)nonexcludable
• B)pure public
• C)private
• D)nonrival

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the company.

Unissued Stock

Shares that have been authorized by a company's charter but have not been issued or sold to investors.

Shares

Units of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.

Book Value

The net value of a company's assets as recorded on its balance sheet, calculated as total assets minus intangible assets and liabilities.